Understandably so, many baby boomers are worried about saving for retirement, especially considering elevated rates of inflation, rising healthcare costs and increased life expectancy.
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So what’s a retiree to do in order to assuage these fears? Well, perhaps many things. For one, they can save money in clever ways. Here are five strategies experts are seeing for boomers looking to optimize their retirement savings.
Consolidating Retirement Accounts
Trevor Houston, CEO at ClearPath Wealth Strategies LLC, explained that since retirees have likely held a number of jobs over the years, they could potentially have five to 10 retirement accounts open at different companies.
He recommended rolling all these 401(k) plans into one IRA in order to reduce administrative fees and prevent losses or penalties from forgotten accounts. Certain financial institutions also offer incentives to roll over old 401(k) plans, which can range between 1% and 5% for a cash match.
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Creating ‘Forever’ Income
Shavon Roman, financial advisor and chief money strategist at Heal Plan Invest, stated the most common mistakes boomers make are leaving all their money in their retirement accounts and/or regularly taking money out of their accounts and “hoping that bucket of money lasts forever.” She warned that it won’t.
She recommended creating income that will last forever by purchasing a lifetime annuity with a portion of one’s retirement savings.
Investing
While many wish to cling to their nest egg for dear life, Roman stated boomers’ best bet is still investing at least a portion of their income in the market. Yes, there is some exposure to risk, but managed carefully, Roman argued there is also enough opportunity for growth.
Consider income-generating assets like dividend-paying stocks, real estate investment trusts and bonds.
Getting Healthy
“This has nothing to do with money and everything to do with money,” Roman said, who argued not being healthy is one of the most negative influences on your wallet.
Simple steps like eating a balanced diet, exercising and getting regular health screenings can help optimize savings both currently and down the line.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: Financial Experts Reveal Clever Ways Boomers Are Saving Money in Retirement
